While some risk currencies have been bullish in recent months as the sentiment in financial markets improves, others have been lagging somewhat. NZD/USD has been quite bullish during the last few months, as the risk assets have been recovering.
The NZD used to be one of the leading risk assets to make a comeback, but that lasted until earlier this month. Since then, the NZD has been lagging other commodity dollars and NZD/USD has been able to make new highs since June, which is more than a month ago.
Yesterday we saw a bearish reversal and this pair lost around 100 pips from top to bottom. This was a strong bearish signal and today we decided to open a sell forex signal. We waited for a pullback higher on the H4 chart. The pullback is complete now after the price was rejected by the 100 SMA (grey) and the previous candlestick closed as a doji, which is a bearish reversing signal after the retrace higher. Now let’s wait for the bearish move to resume again.